Is Waste Management Stock Eyeing Its Next Leg Higher?

There's still room for upgrades among the brokerage bunch

Feb 22, 2022 at 10:33 AM

The shares of Waste Management, Inc. (NYSE:WM) are up over 25% year-over-year, and have been holding close to the $144 level, which is also home to the stock's May and June 2020 highs. Support also looks to have emerged near a trendline connecting lower lows since March 2020, and what's more, the equity saw a deep pullback to its 320-day moving average, which is typically a good indicator that it's time to buy the dip on stocks.

Despite this promising price action, there's still room for upgrades among the brokerage bunch. Of the 10 in coverage, seven call WM a "hold" or worse, compared to three "buy" or better ratings.

All that being said, this could be the ideal time to speculate on the stock's next move higher with options. Waste Management stock's Schaeffer's Volatility Scorecard (SVS) ranks at 74 out of a possible 100, implying the stock tends to outperform options traders' volatility expectations. What's more, our recommended April call option has a leverage ratio of 10.24, and will double in price with an 8.6% pop in the underlying shares.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this WM commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

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